Here’s how to teach children to save, not spend in 2023
As Arizona’s State Treasurer and the Chair of the state’s first-ever Financial Literacy Task Force, promoting financial education to Arizona’s youth is one of Treasurer Kimberly Yee’s top priorities. Reports indicate a child’s saving and spending habits are established at an early age. Treasurer Yee has seven practical tips to help parents and caregivers teach children how to save and realize goals for the future.
7 Tips to Become Savers:
1. Walk the Talk: Talk about what you are saving for and what sacrifices you make for retirement, vacations, their college, etc. and demonstrate that – take them with you to the bank when you make a deposit or show them how you do it on your phone or laptop for online banking.
2. Match It: Reward good saving habits by matching their savings and encouraging kids to delay gratification by saving for what they really want.
3. Make it Fun: Turn conversations about saving and college into games and crafts to keep it hands-on. Painting their own piggy bank would be the perfect time to talk about dream jobs and how to prepare and save to get there.
4. Hands-On Saving: Provide an allowance with rules attached for saving and spending, but make sure they earn the allowance – don’t just give them money.
5. Let them Fail: Allowing kids/teens to make a few minor financial failures when they are young can help them avoid major failures as they become adults. Missing a phone payment and losing their phone for a week would be something a teen won’t soon forget.
6. Celebrate Success: Track results and share progress with your child to help motivate them in their studies and savings and know your expectations for their future. Make a chart and when they reach a milestone, find a way to celebrate that involves spending time together instead of money.
7. Jump Start College/Career Savings: Give children a boost with saving for their future education by setting-up a tax-deductible AZ529 Education Savings Plan. Contributions from parents, grandparents, relatives and family friends provide a jump-start for loved ones and inspires them to contribute as well.
Visit www.az529.gov for more tips to save and inspire children to think about their future education and dream career in the New Year.